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Battling the Tiger: Combating corruption in the Sino-world

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After the Eighteenth National Congress of the Communist Party of China, a new round of anti-corruption campaign has been going on. With almost fifty provincial officials, more than 600 director-level officials and more than 200,000 petty officials snared, this campaign is being conducted in a harsh way on a large scale.

More importantly, as Vice Primer WANG Qishan pointed out, the ultimate goal is to reach the “would not think of it”stage from the current “would not dare”stage. In order to realise this goal, the passive control and surveillance measurements which have been carried on over decades may not be able to meet the demand. What should be prior taken into consideration is institutional designs for a clean government.

If we look for a successful example for China on anti-corruption reform, Hong Kong may be a good one. During the 1960s, with the increasing population and the rapid expansion of manufacturing industry, Hong Kong was faced with a similar situation which corruption was wide-spread around the force and the community in mainland China nowadays. (Manion, 2004)And yet since 1974 when the Independent Commission Against Corruption (ICAC) was created, the anti-corruption interventions has empowered to accomplish the transformation. This commission, according to the Basic Law, functions independently and is directly accountable to the Chief Executive. (Scott, 2011

So the paper is conducted by analysis on causes of corruption and anti-corruption measurements in mainland China, followed by the evaluation and comparison of Hong Kong and mainland China. Though sharing a Chinese culture, great difference remains between each other. Especially when we focus on the anti-corruption achievement, Hong Kong, considered as the freer market from government intervention, has incredible achievements in combatting institutionalised corruption while China, during two decades of anti-corruption campaign, remains one of the most corrupt countries.

This paper considers the rooted causes and problems of the anti-corruption strategy in mainland China. By introducing the incidence of Chen Xitong and the general situation on state personnel corruption, it argues extent, forms and characteristics and the institutional loopholes of Chinese government. Meanwhile, the process of the transformation in Hong Kong will be illustrated empirically and compared with the process in mainland China. The key part——ICAC will be evaluated. And the suggestions of establishing such commission in mainland China will be introduced and tested. The main researching method is new institutionalism by focusing on the institutional design and informal practice in mainland China.

The definition of corruption

Corruption, simply speaking, means the abuse of power for illegal monetary transaction. One of the most comprehensive definitions that by a short simply wording incudes both a public and private sector corruption comes from a Vienna-based prof. Anis H. Bajrektarevic: “Seemingly victimless, hidden trade-off between influence and gain” (Bajrektarevic, Palermo Treaty system, Addleton NY, 2011). The World Bank defines (public) corruption as the abuse of public office for private gains. However, when it comes to a definition in concrete terms which contain too much connotation.(Girling, 1997) In addition, the causes and the results of public-private sector corruption are diverse. It can be traced in governments and civil societies, which include economic systems, administrative systems, judiciary systems and so on. (Harris, 2003) No matter how broad and complicated the concept is, it can reflect rules and violators who against those rules can be identified and punished. (Gambetta, 1999)

In the Chinese context, there are two major definitions that can be applied to China in the transition period. For those who are in favor of a tough enforcement and party disciplinary, they would like to provide a more broad-based definition which includes public offices, public interest and public opinions factors. By contrast, for those who are in favor of an effective effacement and market efficiency, they would focus on the abuse of public office. (Sun, 2004) Though there is no formalistic answer to the question on what the definition is, this paper would use a definition corresponding with the Chinese context. The corruption is defined as the abuse of authority or the public power by occupants in the government or the party to gain private interests. This interpretation narrows down to the public office level that focuses on the abuse of public power in the political activities.

Corruption in Mainland China

The process of corruption in China after 1949 can be roughly divided into two periods. There is the classical communist period from 1949 to 1976 and the socialist market from 1976 to the present. (Harris, 2003)

From 1980 on, the development of corruption took place together with the legitimating of financial pursuit, delegation of power to an individual or an agency, fast expansion of the market economy, deficiency of the Party’s discipline as well as delaying in introducing regulatory control and required on time legislative renewal. (Kwong, 1997)

One case disclosure shocked the public. That is that the mayor of Beijing——Chen Xitong was found directly engaging in bribe taking, with numerous bribe givers and huge material rewards. Even for Chen Xitong, whose downfall is often interpreted as political, the size of his booty warranted his fate. Two private villas, where Chen spent his leisure time and kept his mistresses between January 1993 and February 1995, cost the public nearly Y40 million in maintenance fees, and Y1.05 million in catering expenses. According to Sun (2004), “The villas were filled with luxuries ranging from gold doors and agate floors to extensive maintenance and security. Eventually, he was sentenced to 16-year jail term. ”(p. 148).

In Alan Liu’s categories, the forms of corruption in mainland China can be roughly divided into three groups. The first one is universal in all political systems including bribery, embezzlement and abuse. The state property is still a main target but not the only one. Instead, it is the greater inducement from and dependence on the market that now defines the forms and methods of violation. The second type is related to the economic reform, such as accounting violation and privilege seeking. When decentralisation was carried on gradually, autonomy and increasing resources have facilitated corruption dynamically. Precisely, there is linkage between economic liberalisation and corruption. Third one is resulted from moral degradation in a broad way. Sun (2004) states that “even here the marketplace has stimulated distinctive forms of moral deviation in recent years.”(p. 51).

Causes of corruption in China

The growth of corruption is considered as a policy outcome.(Gong, 1997)It results from mainly the economic reform in an unconscious way during the reforming and opening period. In general, economic reform which is for market development and economic growth, has built up the advantageous condition for the explosion of corruption. Increasing business opportunities, the looser economic policies and the higher payoffs motivated officials to get involved in corruption.

To break through the planned economy which made the economy in China stall market economy was introduced to China 30 years ago. Wedeman (2012) states “this reform help China accomplish an economic miracle,” which also makes China lie on the top in the international community. As the continuous development of market economy and reform and opening going deeper, corruption has come out as an ineluctable social phenomenon.

During the reform of economy, market competition is one of the most important factors which cannot be underestimated. When analysing the relationship between market economy and corruption, both western and Chinese scholars found out the paradox. There is a negative correlation between economic growth and corruption. Firstly Paolo Mauro, followed by other economists, found that the higher the rate of corruption is, the lower the rate of development is. Empirically, they drew out a conclusion that when the rate of corruption increases one point, it results in the reduction of one percent in economic growth. Theoretically, this statement also can be correct because equality and justice are the key factors of market competition. However, this kind of developmental corruption model cannot successfully reflect the facts in Mainland China where we can see the increasing corruption rate together with the fast development of market and economic growth. Some severe realities are quite obvious. The number of officials corrupting keeps increasing. The involvement in business field of governmental officials is enlarged. Corruption, originally a concealed individual behaviour, is turning into an organised collusion such as Shanghai Gang. (Gong, 1997)

As I mention before, there is a paradox about the relationship between market economic growth and corruption. Admittedly, corruption keeps developing in Mainland China together with the rapid growth economy. Gong Ting (1997) uses a conceptual framework which is the interactions of formal and informal practice from new institutionalism to give the explanation. She believes that corruption, as an informal practice, is actually a production of formal practice with loophole. They are interactional to some extent. To stamp out corruption, the starting stage should be on the amendment towards formal practice such as legal framework, judicial system and institutional design.

As for the judicial system, she also points out that the wide spread of corruption is facilitated by the way the courts are organized and supervised. The courts, in mainland China, are not different from other governmental agencies. They are not independent. The local government decides the finances of the courts. Senior judges are nominated by the local CPC Committee and endorsed by the local People’s Congress, meaning judges whose decisions are seen to violate Party policy may be discharged or otherwise punished. The courts are subject to the extra-legal authority of the Political-Legal Secretary of the local Party Committee, which deals with difficult and important cases referred to it. (Manion, 2004)

Anti-corruption strategy in Hong Kong

What makes Hong Kong’s economy successful? Several points below are worthy being remarked such as low tax collection, freedom in market competition, a relatively efficient legal system, an efficient and effective network on transportation and communication and “a competent workforce working along with a pool of enterprising entrepreneurs”described by Howlett (1997, p.47) (as cited in Manion, 2004). Those factors not only significantly contribute to the economic development in Hong Kong but also enable Hong Kong’s economic wealth which does good to combatting corruption as the government can afford the salaries of civil servants and enough human and financial resources can be committed. (Quah, 2003)

Different from the Central Commission for Discipline Inspection of the Communist Party of China (Zhongjiwei), the ICAC operates independently in terms of structure, power, finance and personnel. Before 1997, there was a direct access between its Commissioner and the Governor. After July 1997, the ICAC is directly responsible to the Chief Executive. So far, the ICAC has developed into three major functions which are investigation, prevention and education to fight against corruption in Hong Kong. (Scott, 2011)

The Structure of the ICAC

As for its structure, there are main three unequal branches and the Administration Branch. Among the three departments, the largest one which is the Operation Department takes the responsibility of the investigative function. The over nine hundred employees takes up 73% of the ICAC human resource. The head of the Department also serves as the Deputy Commissioner, assisted by two Directors who are in charge of the government sector and the private sector respectively. The second largest one is the Community Relations Department. The two divisions of this Department are mass media and the public. It has 202 staff which is 16% of the total staff in the ICAC. Intensive education projects are conducted in schools and business sectors. In addition, it also builds up a close relationship between mass media and district organisations in order to raise the public awareness and gain their support towards the anti-corruption movement. The smallest department is the Corruption Prevention Department (CPD), taking up 4% of the total employees in the ICAC. In concrete terms, the objectives of the CPD is to inspect the practice and procedures of government and public bodies. Also, it takes the responsibility of making amendments and suggestions on the working methods. Training for civil servants is also offered by the CPD for the purpose of prevention. Apart from these three departments, there is a separated administration department. It is in charge of human and financial resources and general matters such as accommodation and technologic service. Besides, an advisory committee is to examine the work of each department.

The ICAC also has its own recruitment practice. The employees are recruited out of the control of the Public Service Commission, which makes the staff of the ICAC separate from other governmental sections. During the recruitment process, the ICAC itself takes the whole responsibility of promotion, screening, interviewing and other process. As for the financial fund of it, by the 2001/2002 financial year, its budget has reach 81 times compared from the first year when it was established. This rapid increasing in budget reflects the strong will of the government on the support of the ICAC anti-corruption enforcement. (Quah, 2003)

Comparison on Anti-corruption Strategy in Mainland China and Hong Kong

Institutional Designs

The main difference in mainland China and Hong Kong is the anti-corruption agencies. In Hong Kong, the ICAC is an independent agency with power and increasing budget. More importantly, the Commissioner of the ICAC is directly answerable to the Chief Executive, which makes the ICAC a separated agency apart from other governmental departments. (Harris, 2003) However, in mainland China, unclear boundary exists between the party and government branch. Junctional jurisdictions are dominated by communist party committee generalists at each level. The second point is the institutional design. In Hong Kong, one of the three important methods of anti-corruption is the prevention through institutional design is; in mainland China, certain economic reform policies actually stimulate corruption. Reorganisation of procedures to reduce incentives for corrupt transaction has been shown recently. Finally, the analysis will go back to the basic ground of anti-corruption strategy which is the constitutional design. This essential difference lies in the two different regimes. Hong Kong has a functioning rule of law regime and effective civil liberty while mainland China is conducted by a rule of law regime less constructively and neglect of civil liberty. (Manion, 2004)

Hong Kong’s institutional design not only focus on the enforcement measures but also pays high attention to the prevention by offering suggestion. The ICAC’s Corruption Prevention Department is to study the work procedures in governmental departments to identify opportunities for corruption. (Manion, 2004) Having studied and analysed, suggestions would be offered so as to reduce the possibility of corruption by redesigning the working procedures. Further, after the suggestions are given, the Department is still in charge of checking the effectiveness of the suggestions, making sure the new design would not offer ground for new chances for corruption. The function as consultant is one of the key and unique notion of this department, especially when the government is on its way to draft and amend legislative text and policies. To a great extent, this function makes sure the anti-corruption movement starts from the beginning level where new laws are introduced for an incentive purpose.

Also in mainland China recently, more attention has been paid towards designing incentive structures from the original forcemeat stage. In Anhui province in 2000, the “taxed for fees” reform was adopted from the perspective of being incentive. The reform is to reduced possibility of corruption in the township governments and villages by reforming the basic collection system. It replaces a single agricultural tax, capped at about 7 percent of income and collected by higher level governments, for various fees and charges levied by township and village administrations. Compared with the previous regulations against illegal fees in 1990s, Manion (2004) described that “the reform frees officials at the rural grassroots level from fee collection and makes corruption at the township and village more difficult.”(p. 205) In 2003, this reform was successfully adopted nationwide, becoming a good example in mainland China of transforming to the incentive structure.

According to policy analysts, the key part of institutional design in Hong Kong is the independence of the ICAC and it is what mainland China should emulate when reforming the anti-corruption strategy. This refer to the exclusive anti-corruption mission of the agency: “The ICAC is not embedded in the civil service or any other larger organisation with multiple goals”. Among this, the most important is the police force remaining independent, especially in the 1973 context of a public perception of that department as the most corrupt of all. Agency independent worked in Hong Kong primarily because this agency design worked as a signal, a public announcement of an “equilibrium switch”——but it worked especially well in a particular context. With corruption structured this way, the creation of an agency that effectively rejected the police as anti-corruption agents helped legitimate the government effort and enlisted ordinary citizens as voluntary enforcers. Independent was complemented by power, also an element of agency design: the ICAC was given strong investigate powers and considerable financial resources.

Legal Framework

Difference also lies in the law set in Hong Kong and mainland China. The reasons behind it are partly contributed by the different policy choices which illustrate different experience and views. From a perspective of a higher degree, however, basic difference on constraints of power should be noticed.

A solid legal foundation has become the base of Hong Kong’s anti-corruption reform. Two important legislative context have to be introduced. The Prevention of Bribery Ordinance was strengthened in 1971. It provided with a clear definition by including “unexplained income or property”which can serve as the evidence of corruption practices. Clarity, stability, scope and whether it is easy for application, all the points above greatly influence on whether and how a corrupt official can be punished according to law. (Quah, 2003)

To build up a clear legal basis, several points should be well defined. Legal clarity, breadth, stability, and ease of application all contributed to a situation where corrupt officials were routinely punished according to law. And the public confidence of the anti-corruption enforcement is also, to some extent, basing on whether the law is harsh without loopholes.

On the contrary, in mainland China, the main force on combatting corruption is centralised by the CDIC which plays as a leading and administrative role. But as for the legal system itself, it remains weak.

What depletes the development of law and a legal-based authority in mainland China? One point should be noticed that under the leading of the CDIC, the investigation and punishment are conducted within the party system. This makes lag when a criminal case is transferring into the prosecution process. So the agency design which makes anti-corruption enforcement outside the criminal procuratorates system may be one of answers to the question above. (Gong, 2004) Besides, the law making process is also not propitious. The first criminal code was passed in 1979. Then comes rapid changes on political economy which forced law makers refine the law with taking lots of new factors into consideration. The role of law and its distinction between party leadership shows a fundamental contradiction in mainland China. The law should serve as a powerful tool to fight against the abuse of official power. (Manion, 2004)

Conclusion

China’s path of corruption is actually quite similar to the process in Hong Kong, rapid growth in population and economic transition. By viewing Hong Kong as a good example of mainland China, we can find basically one main loophole which is the ambiguity of power between the party and judiciary from both legal and institutional prospective. If mainland China are going to set up an independent agency like ICAC in Hong Kong, a clear boundary must be well-defined. First of all, as for the institutional setting, it is to avoid the interference from the government and the party in order to ensure authority and transparency of this agency. Second, it is to reduce delay when a corruption crime transferred from the investigation of the party to the prosecutors. Further, even though the “fight against tigers”movement achieve success for the current situation, refining the present legal framework still remains the determinant.

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Twists and Turns in US -China Trade War

Gen. Shashi Asthana

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US Secretary of State Mike Pompeo’s stopover at Beijing on 08 October may not have been a pleasant experience, more so in the backdrop of accusation of US Vice President Pence about  China attempting to interfere in U.S. elections. The agenda of North Korean denuclearisation, where US and China were broadly agreeing earlier, seems to have taken a back seat, and improvement of relations doesn’t seem to be realistic in near future. The ongoing trade war continues as both sides dig their heels despite being the biggest trading partners of each other, because it is also linked with global dominance, strategic and military posturing, diplomatic and information offensive.

 China Braving Threat to its Vulnerabilities

China is putting a brave front despite being badly hit at some of its most vulnerable spots in the tit-for-tat trade war with both sides spiralling the slapping of tariffs on a wide range of each others’ trade items. Taiwan, which is another sensitivity of Beijing is witnessing visit of US officials after Taiwan Travel Act was signed by President Trump, with a promise to arm it further with latest weaponry. US continued military posturing in South China Sea, along with the appearance of UK warship ignoring Chinese repeated warning is another concern.   A recent injection of over $110 billion by China into its banks and hardly any financial benefits coming out of BRI partners incapable to repay anything is tightening its financial freedom for global dominance. Some of its BRI partners want to get out of the ‘Debt Trap’ by refusing/reducing Chinese investments is adversely affecting Chinese dream project (BRI), after five years of its announcement like Philippines.

Not a Smooth Sail for US

US on the other hand cannot be celebrating either, with China digging it heals and refusing to give up either in trade war or South China Sea. On North Korean front, the policy of good optics continues with Kim managing to get a lot of goodies from South Korea (presumably at their cost), during the last summit of North and South Korea. Kim in fact has been an outright winner, managing to get another Summit with President Trump, which helps him in convincing his countrymen of his sound leadership, as well as boosting his status internationally. US sanctions on paper continue, but after the chest thumping at Singapore Summit, his friends like China automatically relaxed the sanctions on North Korea, without any worthwhile denuclearisation/reduction in his nuclear/missile arsenal. US realises that knocking out China financially is the key to its global dominance; hence is unlikely to soften up to China. US also faces another challenge of keeping its allies like Japan and South Korea satisfied while negotiating with North Korea and asking ASEAN to make choices of partners, besides continuing with CAATSA hurting some of its strategic partners who could be helpful in balancing China.

It will take some time to see that whoever has greater resilience to withstand the economic stand-off and appetite to take setbacks will have an upper edge, which seems to be US at this point of time. As per IMF assessment, China’s GDP size will be 1.6 per cent lower in 2019 than it otherwise would be, if the US slaps tariffs on all Chinese imports.

How is India affected?

The Indian economy has survived some global slowdowns earlier and should be able to sail through the present one. The bigger problem is the sanction under CAATSA in dealing with Russia for urgently needed military hardware like S-400 and Iran for cheaper crude oil being paid in rupee terms, for which India has adequate refineries. The US option of buying shale oil does not suit India as it does not have adequate refineries and will have to purchase finished product in dollar terms. The port of Chabahar is also crucial for India for connectivity to Afghanistan and CAR. The silver lining is that US being our strategic partner will like to have well equipped Indian Forces to balance China and Indian connectivity to Afghanistan, in case Pakistan does not serve their strategic interest. On both counts I am hopeful that US will find a way out not to hurt its strategic partner.

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The talks held in September 2018 between Kim Jong-Un and Moon Jae-In

Giancarlo Elia Valori

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In less than one year three meetings have been held between the North Korean Leader and the South Korean President, Moon Jae-In.

In the initial meeting the two leaders had decided to put an end to the state of war between their two countries. They had also reaffirmed the goal of denuclearization of the entire peninsula, with the consequent destruction of the nuclear potential of South Korea and of the United States, in particular. They also decided to create an inter-Korean Liason Office between the two sides of the Demilitarized Zone and to bring together the families dispersed between the two Koreas. Finally, the idea was to create new communication infrastructure – railway lines, in particular – a project by which Russia has always set great store.

Indeed, Russia is betting many of its cards on a reunification between the two Koreas, capable of enabling it to keep its excellent relations with South Korea – which are essential for the economy – and to also support North Korea, which is Russia’s unavoidable strategic goal.

Now the two Koreas are dealing on their own, without the US brokerage and intermediation with respect to South Korea, although President Donald J. Trump has recently stated that President Moon Jae-In is his official “delegate” for the denuclearization of the Korean peninsula.

The United States is scarcely interested in the internationalization of the North Korean economy. It only wants denuclearization, while Kim Jong-Un wants denuclearization to develop his country’s economy and maintain its geopolitical and national autonomy.

A serious problem – both in talks and in the final or working documents – is also to define an effective mechanism to check denuclearization.

Indeed, between September 17 and 19, 2018, the signing of the Joint Declaration of Pyongyang has not fully clarified the mechanism of checks on the denuclearization of the Korean peninsula. Kim Jong-Un’s idea is to organise these checks with a series of “experts” appointed by the friendly powers, while the South Korean idea is to accept the maximum possible denuclearization to start the long process of reunification.

The two respective Defence Ministers, however -namely Song Young Moo for South Korea and Rho Kwang Chul for North Korea – have just signed a separate document from the rest of agreements.

In that text confidence-building measures between the parties are put first, with North Korea’s acceptance of dismantling a launch pad and a site for checking jet engines, with the presence of yet unspecified, but friendly international experts. From IAEA? We have some doubts, in this case.

Subsequently North Korea could also dismantle the Nongbyon site, if the United States does the same in South Korea.

It should also be recalled that most North Korean missiles are built to be launched by mobile vehicles, not from fixed bases.

In short, North Korea wants the United States to remove the nuclear umbrella protecting South Korea and Japan while, in the recent talks with North Korea, the United States thinks of a bilateral treaty regarding only the Korean peninsula and, at most, some classes of North Korean missiles.

In the US mind, the planned reduction of North Korean long-range missiles could be even equivalent to a nuclear and conventional decrease of its troops stationed in Guam.

On the basis of a new future agreement, both Koreas (and God only knows how and to what extent the North Korean conventional military potential would be useful for a South Korea unified with North Korea) would also define maritime and land buffer zones, as well as a no-fly zone over the old border, with a view to avoiding clashes or accidental air battles.

This is already partially clear, but much work shall be done to define all the details.

There would also be plans to cover or reduce artillery batteries along the coast.

Obviously, should these talks run aground, the only concrete political result would be the progressive divergence between South Korea and the United States, precisely on the problem of the peninsula’s denuclearization.

Furthermore, over and above the aforementioned sites, North Korea will dismantle the site of Dongchang-ri, in addition to the site of Yongbyon, while Kim Jong-Un is also very interested in the building of fast railway links between South and North Korea.

The two Koreas will get the industrial site of Kaesong back in shape and the old tourist project concerning Mount Kumgang back in track, besides planning new joint economic and tourist areas.

The inter-Korean agreement regards also collaboration for medical and environmental issues, as well as for the protection from epidemics.

In other words, both Koreas think of an economy of compensation between them, which could also develop at a later stage and become a need for the development of both countries.

An economic-political symbiosis that could get the United States out of play and later reinstate Russia, which is increasingly interested in the South Korean economy, as well as finally favour China, which has no intention of leaving the Korean peninsula to the hegemony of North Korea alone.

At the end of the Treaty, there is also the project of a joint participation in the Tokyo 2020 Olympic Games and a joint candidature for the 2032 Olympics.

A few days ago, North Korea also expressed its intention to join the International Monetary Fund and the World Bank – a sign that the internationalization of the North Korean economy is now a certainty.

Hence it is a de facto peace treaty between the two Koreas.

If North Korea continues along this line, it is very likely that South Korea will gain a tactical advantage over the sea while, if the relations between South Korea and the United States remain as they currently are, there should be no significant changes in bilateral relations between the USA and South Korea.

However, what is the current state of relations between the United States and North Korea?

In fact, while the inter-Korean relations are all in the framework of effective confidence-building measures, the clear purpose of the fourth round of talks between the two Korean leaders is to preserve a strong US engagement in the whole negotiation process.

Kim Jong-Un wants to engage the United States for his global economic projection and he certainly does not want to remain tied to a regional economy, albeit open and “reformed” according to China’s rules.

For North Korea, the procedure is simple: at first, bilateral talks with the US support for South Korea; later peace between the two Koreas and finally what is only interesting for the USA, namely denuclearization.

It is not even unlikely that the United States does not accept this timing, but it is also unlikely that it realizes the strategic and economic aspects of this timing.

North Korea wants a fundamental agreement with South Korea because: a) it is an unavoidable asset for the modernization of its economy; b) it is the fundamental strategic factor to have the support of both Russia and China, who want to avoid North Korea’s hegemony over the peninsula, but also want to keep it as a rampart for US forces in South Korea; c) it is only through South Korea that North Korea will eventually be in a position to be connected to the Chinese maritime economic and strategic system and reach up to the Mediterranean.

In fact, if the relations between the United States and North Korea improve further, the site of Yongbyon could be dismantled definitively.

Hence currently Kim Jong-Un wants to thoroughly test the US goodwill, rather than South Korea’s goodwill, in developing a long or very long-term peace policy.

In Kim Jong-Un’s mind, there is in fact a key factor: the US behaviour in the phase in which Muammar Gaddafi accepted its proposal to dismantle his nuclear project.

Kim Jong-Un thinks that not even the story of Saddam Hussein is a guarantee for the US long-term reliability and for the stability of its leaders’ word of honour.

This is the real important factor in the strategy of the North Korean Leader.

Moreover, the US immediate reactions to the last meeting between the two Korean leaders have been fast and positive, both by President Trump and by Secretary of State Mike Pompeo.

And North Korea’s autonomous foreign policy has been seen also recently, with the 70th Anniversary military parade.

North Korea’s military parade and its important national celebration, was attended by Li Zhansu, ranking third in the internal power hierarchy of the Communist Party of China (CPC); by Valentina Matviyenko, President of the Russian Federal Council, the third elected office in the Russian Federation; by a very significant figure, Mohamed Ould Abdel Aziz, President of Mauritania, and finally by Hilal al Hilal, deputy-General Secretary of the Syrian Baath Party.

With peace, North Korea will significantly develop its already multiple economic and political relations with Africa, which will be essential for its new economic development.

At the military parade staged on September 9, there were also authorities from Iran, South Africa and Singapore – which is the never forgotten model of the Chinese “Four Modernizations” -as well as other 60 delegations from “friendly” countries.

At economic level, in August, shortly before the big military parade of the 70th Anniversary, there was the International Fair of Razon, which hosted as many as 114 companies of which 52 North Korean ones.

The North Korean product lines mainly included pharmaceuticals, foodstuffs, textiles, electronics and cosmetics.

However, there were many Chinese large companies selling their products in North Korea despite the UN sanctions.

As from September 17, there was also the Autumn Fair which brought together 320 commercial companies from Russia, New Zealand, Australia and China.

This is in fact the new paradigm of North Korea’s foreign policy.

The dollar has also grown in the exchanges with the North Korean currency, both on the official and on the “parallel” markets.

If all goes well at geopolitical level, the North Korean project will be to further improve its light industry, in addition to the diversification and quantity of products, with a view to trying its own autonomous way on the market world, as was the way of the nuclear system.

It should be recalled that this was also Kim Il-Sung’s project.

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China’s Imprint underneath the Pyongyang Joint Declaration

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On September 18, the leaders of two Koreas met each other in Pyongyang, the capital of the DPRK. The world media focused on the meeting during which the two sides issued the “Pyongyang Joint Declaration”. If we see the Panmunjom Declaration serving as the cornerstone of the dialogue between two Korea, it is necessary to say that this joint declaration took a substantial step to the denuclearization of the Korean peninsula that is vital to the regional peace and beyond.

Literally speaking, the Pyongyang joint declaration highlighted the key issues as follows. First, both sides are determined to achieve the denuclearization of the Korean peninsula. Second, they will work together to improve their relations with a view to the existing state of war, as the defense chiefs from the DPRK and ROK earlier signed a comprehensive agreement aiming to reduce tensions on the peninsula. Third, they will promote the peace talk process of the Korean peninsula. Given that Kim pledged to work toward the “complete denuclearization of the Korean Peninsula”, it would be seen as a political declaration that would mark a starting point for peace negotiations. If all goes well, a peace treaty would be sealed and then comes normalization of DPRK-US relations after it achieves complete denuclearization.

As a close neighbor to the Korean Peninsula, China always supports the DPRK and ROK as well in improving their relations through dialogue and consultation and promoting reconciliation and cooperation. This is the consistent and persistent position of Beijing, which has been playing a responsible role in politically resolving the Korean Peninsula issue and achieving the long-standing peace of the region.

In effect, prior to the leaders of two Korea met each other this week in Pyongyang, they have closely contacted their respective allies or strategic partners. Among them is China, dealing with both sides – Pyongyang and Seoul – in a unique way. It is true that China is the largest trading partner of the ROK while it is equally the only legal ally of the DPRK as well as its largest ideological partner now. If we review the bilateral relations between China and North Korea since last March, Kim Jr. has paid three significant, though unofficial, visits to President Xi of China. For example, during his March 25-28 visit, both sides vowed to continue their traditional solidarity in terms of their shared ideologies and common strategic interests. Xi especially proposed to strengthen the close ties between the two ruling parties. As he said to Kim, “party-to-party and state-to-state relations are the common treasure to both sides. And safeguarding, consolidating and developing China – DPRK relations are unswerving guidelines for China’s foreign policy and security strategy.

During his second meeting with Xi in Dalian summer resort, Kim vowed to terminate all the nuclear tests and to follow denuclearization if the United States took corresponding measures with good wishes. Then following his meeting with Trump in Singapore on June 12, Kim came to Beijing again on 19 to meet his Chinese counterpart. Xi confirmed China’s “3-no change” policy towards the DPRK, that is, political solidarity between the two parties remains unchanged, the friendship between the two peoples remains unchanged, and China’s support of a socialist Korea remains unchanged. Essentially, they serve as the foundation of the strategic consensus between Beijing and Pyongyang. In return, Kim reiterated his permanent shutdown of all nuclear tests and facilities if the US would respond sincerely and responsibly.

Given all the analysis above, it is understandable to conclude that China’s long-standing adherence to the goal of denuclearization of the Peninsula through dialogue and consultation is fully reflected in the Pyongyang Declaration. Meanwhile, China’s stance remains evident since it claims that the Korean issue must be resolved eventually by the Korean people rather than any external power. Therefore, peace not force is the only acceptable way. Also, as China and Russia have repeated that no coercive change of the regime by outside power is tolerated, North Korea can be confident and comfortable to proceed the permanent shutdown of the missile engine test site with international experts observing; and then a complete denuclearization is not too far in the future.

Here is necessary to argue that China has never claimed to play an exclusive role in the Korean Peninsula. Instead of that, China has always encouraged the DPRK to talk to the United States and other relevant parties. Since Kim has agreed to make a trip to Seoul for further talks and to meet the US high-ranking officials in Pyongyang soon, the summit between Kim and Moon marks a leap forward toward peace.

Yet, as the lessons in history show, it is better to approach realistically the Korean issue simply because it has involved too complicated concerns and memories and the overlapped interests. Therefore, we should be ready to accept trial and challenges lying ahead. China has insisted on diplomacy which means that all parties concerned should be brought to the negotiating table under the mandate of the UN Security Council.

Now, Beijing has navigated the course of denuclearization proactively to protect two sides’ common core security stakes when Kim reportedly promised to give up his nuclear program if the United States and South Korea respond to his proposal with good will. Due to this reason, China will do what it can to help ensure “no change of regime by force and denuclearization at the same time in the Korean Peninsula”. This is China’s influence or Beijing’s imprint on the Korean denuclearization issue and the regional peace.

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